In an age where money is so essential to us it’s really easy to fall into a pit of debt. This inevitably leads to a vicious circle and it’s easy for it to spiral out of control. If you can possibly avoid it, the best thing is not to get into debt in the first place. Being in debt leads to depression, a lack of self-esteem and motivation and having the constant anxiety of people chasing you for money.

There are several traps that you could fall into – we’ll list them here so you know what to avoid and stay out of debt.

Oh how tempting it is to do a big clothes shop in your favourite store and put it all on a store card! Most people have done it – it’s a quick way to get what you want, when you want it. But what you don’t take into account when you are making your impulse buy is just what is involved. Often the interest rates will be through the roof, and your repayment terms could be extremely hard to meet. The golden rule is if you don’t have it, don’t spend it, and so no matter how much you crave those designer jeans, just learn to be patient.

Working on the same principle as store cards, credit cards are a sure fire way to rack up a lot of debt. Little purchases here and there add up to some pretty scary figures after a while, making it harder and harder to meet even the minimum payment, let alone clear it. Avoid credit cards if you possibly can, and if you have to use them then get into the habit of paying off what you have spent every month so it doesn’t get a chance to accumulate.

Many stores offer deals such as 2 years’ interest free credit on large items such as sofas and beds. This is a good deal if you stick to it, but if you go over the two years you could find yourself with massive interest rates to take on. It’s much better to save up for what you want and then buy it outright, otherwise it’s just another bill every month.

Most of us will need to get a mortgage at some time or other in our life, and it’s the biggest debt we’ll ever take on. When choosing a mortgage make sure you find the best deal available and consult with a financial advisor to make sure you really understand the small print. There are lots of different mortgage deals available so make sure you really do your homework before you sign on the dotted line.

Being in debt is totally avoidable; you just need to be sensible. Never make impulse decisions – no matter what you are offered make sure you go away and have a serious think about it before you make up your mind. You’ll find that nine times out of ten you’ll decide that you’ll walk away from the deal when you consider it in the cold light of day. A debt-free life is a happy one!

Gwenn Marshall is a financial advisor with Loan Saver Network. His day job is to help customers with bad credit mortgage and he firmly believes that people should get more money-wise and avoid debt traps that lead to bad credit.

When someone is accused of a crime and a trial is set to take place, the accused will usually have a bond set. The defendant must then pay the bond to be able to leave jail and go home until the trial is set. In most average cases, bail is usually set at $10,000 or higher. For high profile cases, bail has been known to reach $1 million or more. there are many famous cases in which bail reached astronomical amounts. it seems as though the threat of flight was rampant in the following cases and the judge in the case set the bail to unbelievable amounts.

Michael Milken – $250 million

$250 million is such a large amount of money it would make most people slap their mama. This amount is the exact number that American business magnate Michael Milken was asked to pay as his bail out of jail. Milken was indicted back in 1989 as part of the largest investigation to take place on Wall Street. Milken was indicted on 98 counts of racketeering and securities fraud and was found to be involved after an investigation into insider trading. Milken ended up serving less than two years in prison for a ten year sentence.

Julius Meinl – $133 million

Meinl is a billionaire of Britain who was suspected of participating in secretive share buybacks that we linked to his European Land Company. Meinl was arrested in 2009 and had bail set at $133 million. $133 million is over $100 million less than Milken’s bail but still such a large amount of money it is unfathomable.

If $250 million and $133 million is an amazing bail amount, how about $100 million? Still a massive amount of money and what would one do to be subject to $100 million set bond? How about selling all-terrain vehicles without a smog certificate? That is exactly what Kening Ma of southern California did and his bail was set at $100 million.

Ma’s wife – $75 million

Kening wasn’t alone in his quest to see ATVs. Kening worked alongside his wife, who was his business partner. Kening’s wife got off a little bit easier with only $75 million, I mean, who doesn’t have $75 million to post?

Bernie Madoff – $10 million

We all know who Bernie Madoff is or at least have heard the name. Madoff was a major name in the news a few years ago after it was found that he was involved in a $50 billion Ponzi scheme. Madoff had his bail set at $10 million, a far cry from $100 million, but still a large amount of cash! Madoff was unable to meet the terms of his modified agreement as no one was willing to co-sign the bond. Even Madoff’s sons were not willing to co-sign the bond. Madoff ended up agreeing to a nightly curfew.

Bernard Ebbers – $10 million

Bernard Ebbers is the former CEO of WorldCom and another member of the $10 million bail club. Ebbers was charged with conspiracy, filing a false statement with the SEC and securities fraud for his part of the WorldCom inflation of assets in 2005. The company inflated their assets by $11 billion to cover the fact that the business was failing. Ebbers is now spending time in an institution in Louisiana and was sentenced to 25 years in jail.

Dennis Kozlowski – $10 million

$10 million seems to be a common price for setting bail and Dennis Kozlowski is another member of the special club. Kozlowski was accused of stealing $600 million from Tyco and faced charges of grand larceny and enterprise corruption. Sentenced in 2005, Kozlowski could stay up to 24 years in jail.

Jeff Skilling and Andrew Fastow – $5 million

Teaming up for the $10 million bail club is Jeff Skilling and Andrew Fastow. Both Skilling and Fastow are former Enron executives and both were charged with several crimes including fraud and conspiracy, as part of the failing energy company. Fastow decided to plead guilty and sell out Skilling and Ken lay. Fastow was sentenced to six years in 2006 while Skilling was sentenced to 24 years. The bond may have been the same but Fastow used his head and testified against others to lessen his jail time.

Author Bio:

Ashley Parker is a writer by profession and excels in finance niche related topics. Here is one such article about bail bonds. When you are in need of it, or to know more information regarding this, you can visit Fullerton bail bonds. Contact the professionals of Bail Bonds Direct to get the bond you need.

Your credit score rating isn’t affected automatically when you get married, in fact it needn’t be affected at all. There are particular circumstances however that could cause a drop in your credit score after tying the knot. Getting married is indeed truly wonderful; it would be a shame to see a union placed under unnecessary stress due to unforeseen financial circumstances. Make sure you and your spouse can get the credit you’ll need, when you need it, by protecting your credit score rating.

How to Make Sure Marriage Doesn’t Damage Your Credit Score Rating

Whenever you apply for a mortgage as a married person the credit histories of both parties will be considered by the lender. If either of the couple have any credit issues their ability to get a loan could suffer. Even if a loan is awarded they may be subject to higher interest rates. The lender will generally consult with a mortgage reporting company to find out the credit scores of those involved.

credit rating

Mortgage companies combine the credit score rating of each spouse into a merged report. Basically they look for the average score of the two combined, and a bad score for one of the couple could result in a declined application. It is a good idea to contact a mortgage lender to first see if you even qualify. Even if you do qualify for a mortgage though, the amount you qualify for could be less, or you may be charged more interest, if there is a bad credit score involved.

All is not lost if one of the married couple have a bad credit score rating. Mortgage lenders also consider such things as how much collateral you have (savings, investments, property), your job history and income, and your general character. It is best not to rely on these things alone however, as a good credit score rating is the first thing they look at. If your spouse doesn’t have one, help them to establish one before applying for a major loan.

If Your Spouse Doesn’t Yet Have a Credit Score Rating

It is possible if you’re newly married that your spouse has no credit rating. To receive a credit rating you must have an account open and active for at least six months with each of the major credit reporting agencies. Adding your spouse as an authorized user is a good way to help them establish a credit history. Though the credit history of an authorized user is considered in the lending process, they are not responsible for repayment of the debt to any extent.

If you need your spouse to establish a credit history rather quickly, it might be better to add them as a joint user. As a joint holder your spouse will be equally responsible for any debt incurred on the accounts to which they are joined. The added responsibility will accelerate their receiving a credit score rating. Keep in mind that if one person doesn’t pay, the other is as equally responsible for the debt. This is a two edge sword that could make or break both credit scores.

In some states there are community property laws that view any accounts entered into during marriage as joint accounts. It doesn’t matter if the additional person is a joint user or an authorized user. If that is the case in your state your spouse could be responsible for debt even as an authorized user. If such is the case in your area, the only way to be removed as one of the parties responsible for the debt is by directly contacting the card issuer and negotiating to have your name removed. Failure to do so could seriously damage your credit score rating.

Ethel Wilson is a financial and credit specialist with 12 years experience in the banking, credit scores, and financial industry. She has advised countless clients on how to improve their credit score rating. She now shares the best of her credit score rating information as a contributor and editor of http://www.creditscoreresource.com

A common problem for those saddled with a large mortgage is that they end up house poor. Essentially, being house poor means that you have no money to pay for emergencies, extras or to save for the future because the price of your loan repayments is too large.

Temporary

Evaluate the situation and see if it is temporary or permanent – this then allows you to take the next step. If your situation is temporary and will only last for 2-3 years then you will most likely need to take little action. Perhaps cut down on luxuries and extras. However, in the case the situation is a longer one then you may need to make large changes to the situation.

Extra Sacrifices

Of course, if it is a permanent situation you can always look for an alternative to fund it. This may mean taking on extra work, changing career or doing some extra freelance work. This can bring your income up and also remove you from being house poor.

house rent

Other Options

One of the most important things to do if you are house poor is to consider some options that may seem outside the normal. Some areas of the country have astronomical home prices, whereas others are a lot more affordable. If you own a home in one of the more expensive areas, you can always consider moving to a less expensive one and taking a different job. Though, this may seem like a radical move, it can have significant benefits and free up your salary somewhat.

Selling

You can always sell your home and use the money you receive to move to a smaller house, or perhaps even rent. If you are a little limited financially you should be thinking how can I sell my house fast? Doing this as quickly as possible to ensure you don’t end up struggling for longer.

Of course, if you are facing foreclosure you may have to talk to your bank about a short sell. This is where the bank accepts the price for the house as a cover for the remainder on the mortgage and allows you to release the title to the new owner.

Foreclosure can be an option if you cannot sell your home, or if the house is in negative equity and it cannot be sold at a high enough cost to cover the cost of the loan.

Don’t repeat the same Mistakes

If you do go ahead to purchase new homes try and ensure that you don’t make the same mistakes again. Following rules such as ensuring that the mortgage is 2.5 times your salary or 25% of your income help here and can ensure you won’t have such problems again.

It’s likely that your rent is your biggest monthly expense. It can be double or even more what you pay on bills so finding ways to save money when trying to live more affordably. This process begins before you even choose a home to live in and it is worth considering the full range of options considered below when trying to find affordable rent.

Shop Around

If you’re looking to move and want to make a saving on your rent, ensure you dedicate enough time to shopping around. There are plenty of fantastic websites dedicated to your property search and you can also visit your local estate agents and see what they have to offer. Not giving yourself enough time means you may settle for something that costs more than you were hoping to spend and you end up putting yourself in a difficult financial position.

Budget

If you’re looking to save cash in any area of your life, budgeting is essential. Set yourself a realistic top budget for your rent and don’t go over it. Even if you see your dream home, don’t consider a viewing if it isn’t within your budget limits as you don’t need the temptation. Stick fully to the figure you allow yourself to go to and where possible try and stay a few pounds below it, giving yourself an extra saving.

For many people budgeting is very difficult, either because of financial difficulty or unexpected outgoings. Bank loans and overdrafts can ease these worries, yet those with poor credit ratings or who have limited timeframes, short term or payday loans may be a suitable option.

Contract Length

Many landlords and agencies are willing to accept a reduced monthly rental amount if you sign a longer lease. Standard leases tend to be 6 months to 1 year but if you’re willing to commit for longer you may be able to negotiate down when it comes to your monthly rental. This is also possible if you can pay extra up front in advance.

Haggle

There is still scope for haggling on the modern housing market. Although agencies advertise a set price they can go back to landlords with any offer you make, just like they could do the same for someone purchasing a home. Essentially it’s their job to shift the properties as quickly and efficiently as they can and so they should take into account any sensible offer made by a potential tenant.

Check out the area

If you check out the area local to your new home you might find other ways to save cash. For example, if you rent an apartment on private grounds which require you to pay for a parking permit, scout the local area for cheaper parking alternatives. If you currently live quite far from your workplace so need to pay to commute or for petrol to get to the office, consider moving closer and saving on that expense. Small changes can make all the difference.

You shouldn’t sacrifice the quality of your home for value but you should think about how you can make your biggest monthly expense more affordable. Following these simple tips could be the first step to ensuring your next home is much more affordable than your current one.

Louise Jenkins writes about Community Payday Loans, for more information visit https://www.communitypayday.com/

With the real estate sector being one of the major contributors to the global economy, investment in this segment has gone up significantly over the last few years. As more and more investors look to find foothold in the vast market, the competition also tends to play high stakes with the investors.

Bidding plays an important role in determining the ownership of any property. However, winning a bidding war depends as much on planning and strategising as on luck of the bidder. It is also important while planning your bidding strategy that you don’t get too caught up in the high-intensity drama of bidding and end up paying more.

real estate investment

Here is a list of strategies that can help you win any major real estate bidding war.

Getting the money

The most important aspect of entering into a bidding war is to get the money ready. You can take help from the banks if necessary. With the monthly carrying cost increasing only slightly more and more people are looking to pay more for homes.

Doing some prior research work

Investing in property being one of the major investment decisions, more time should be given in analysing the true value of that particular property. The property you are investing in should be worth the money you are putting in.

Don’t get intimidated by high bidders

With the price of a property going up, it’s not necessary that you go on bidding to get what you desire. You must have a clear idea on what your needs are and what amount you can spare.

Get adequate information about the broker

There are not many well-known brokers in the market. Only about 20% of the total brokers operating have sound knowledge on the business aspect and that is why it is necessary to choose wisely.

Keeping an eye on mortgage lenders and the rates

The lender providing you a mortgage should be genuine and that is why you should have a written record of the details of the loan and mortgage that has been taken. Similarly the mortgage rates tend to fluctuate based on the performance of the market.

Making a clear offer

Making a clean offer is important because it ensures that the bidding process is not dependent on loans, selling of your previous house or even waiving the inspection.

Giving it a personal touch

Even though it might not sound to be an encouraging option, sending a letter to the seller informing him or her about the necessity of that particular house in your life can be crucial. This can help you get personal favour which you would not be getting otherwise.

Knowledge on the right time for walking away

With developers looking to strategically place the prices of the properties in order to attract maximum investment it is important that you do not get too carried away by the high prices and end up spending more than you had calculated.

Digging deep

Providing the seller with a certified cheque could ensure that you mean business and prevent him or her from selling it elsewhere.

Being more flexible

Lastly, being flexible to the demands of the seller can be an ideal option as it would help you to avoid any additional conflict with the seller.

At the end thus it can be said that planning and strategising are the most important parts of real estate investment. If you can do these things well you can guarantee positive results.

Edward Gary from GetPRed.com is the author of this post. He is a financial advisor and suggests opting for binary options trading which are one of the most innovative and simple ways to make profit the smarter way.

While credit card debt is easy to get yourself into, recovering from it is extremely difficult. Depending on the damage you’ve done, not only could you be paying for it for a very long period of time, but it could also severely impact your credit score as well. If you find yourself down this path, don’t be discouraged. Here are some simple tips to help you on your path to financial recovery.

Stop spending

This is by far the most important tip to take into consideration. You will never be able to dig yourself out of debt if you’re still continuously spending. Stop charging credit cards, stop buying and get yourself into the right mindset. As long as you know you can’t spend anymore, you can move forward and begin the process of credit card debt recovery.

Look into consolidation options

Before jumping into repayment, consider your options. There are various companies that offer credit cards with zero interest for the first six to 18 months. You could consider transferring the balance of one or more of your cards onto this single card to eliminate the interest that you’re accruing. What you need to be careful of is making sure you pay off the total before the no interest rate runs out. Figure out when that date is and do the math to see whether you’re capable of paying off your debt in that time period.

Start paying off high interest accounts

Don’t look at your account balances for each of your credit cards and determine which ones to pay off that way. When you’ve fallen into credit card debt, you need to look into which credit cards have the highest interest rates. Based on this, you should start paying the highest interest accounts first and then work your way down. Even if you have higher charges on other cards, paying off the higher interest accounts will save you significantly more money in the long run.

Pay off cards individually

Before you attempt to tackle all of your debt at once, pay attention to this tip. Paying off each card, one at a time, is your best bet at getting yourself out of credit card debt once and for all. Once you pay off the first one, immediately start paying off the next. Don’t let yourself get carried away over the fact that you paid off a card in full. It’s not time to celebrate just yet! Once you’ve completely paid off all of your cards, rather than spending money on yourself, put what you’d normally put towards paying off your debt into your savings. This way, in case you ever find yourself in debt in the future, you’ll have a cushion to pull money out of.

Talk it out

While many credit card companies can make your life rather difficult due to fees and what-not, this doesn’t mean you should avoid calling them for questions or help. If you call your credit card company to discuss the options available for your account, it could turn out that there’s a solution through them that’s right for you.

If you find yourself in credit card debt, it’s not the end of the world. By following the tips above and understanding how to take the right approach to solving the problem, you’ll be able to pay off your debt over time and will surely be able to learn from the mistakes you made!

Ashleigh Murray is a freelance writer who has a great deal of knowledge in the financial space. After graduating college, she found herself with a hefty student loan and significant credit card debt. She’s been working to pay off the debt over time and has found a lot of great information through creditrepair.com.

A house is not just a structure. It is a place that can be filled with irreplaceable and priceless memories. It is where a couple builds a family and a haven. But apart from the purpose of a house, another important consideration is price. Houses don’t come cheap. Even a small structure with very basic facilities can sell for tens of thousands of dollars, especially if it is in a prime location; and not a lot of people can afford to pay for the full price of a house in just one financial transaction. This is where mortgages become crucial. With a mortgage, a couple hoping to start their life together or even a person who dreams to have his own place can make his wishes of having a home come true.

What’s a Mortgage?

Generally, someone who wants to buy a home will get a residential mortgage application. Here, the person borrows money to purchase a residence, and the collateral used is the house bought. An individual can get mortgage from a bank or a private financial institution, and in case that person fails to pay monthly mortgage fees, the entity that provided him the money has the right to seize the property. A bank, for instance, has the right to evict residents and sell the property in order to cover its losses.

Knowing Your Lender

In the past, it can be a bit easier to get a mortgage approved. Just make sure that you have enough money in the bank, a good and well-paying job, as well as a good credit score, and you’ll most likely get approval in a cinch. These days, however, it’s harder to get approved for a mortgage. Financial institutions are being more cautious, and even though you might possess all the requirements needed, your mortgage might not be approved. But there are also a few things that you can do in order to make things lean in your favor. Here are some things to consider.

It’s very helpful to get to know your lender really well. This way, you’ll know better what sort of requirements or characteristics a lender is looking for. By being aware of such elements, you’ll be able to tailor your application in a way that will most likely satisfy that specific lender. If you get rejected, don’t lose hope. You can go about the rejection in two ways. First, you could request for an exception. This is like asking someone else from the same financial company for a second opinion. Here, you’ll need to compose a formal letter as regards why you are requesting for the exception and point out facts that could’ve negatively influenced your application. You should stick to the financial facts. The second way is to look for another lender. One lender may reject you, but know that many others could also approve your application. But learn from your mistakes. If the first lender you approached rejected you, ask him a couple of questions about why or what factors convinced him to reject the application so that you can make the necessary changes before approaching another lender.

Claire Mann is a freelance writer. She contributes articles to www.laurieannre.com and other real estate websites. This website contains helpful info regarding Ventura County real estate.

So you have finally decided to purchase a home to accommodate the needs of your growing family. However, the cash you have at hand is not enough to cover all the associated expenses. Perhaps, there is no better way to finance your dream property than applying for a mortgage. However, before you go ahead and apply for a mortgage loan, it is worth your time comparing loan packages or programs from different lenders in order for you to arrive at an informed choice and at the same time land a sweet deal. Below are some tips how you can compare mortgage loan packages or programs from different lenders.

Know what you want

The key to securing a mortgage is to know what you really want to get from it. For example, are you willing to be locked in a 30- or 15-year fixed rate because you intend to live in the house for long? Or, perhaps you want to start with a lower upfront rate because you do not have the intent to stay too long in the house? It also pays to know how much you can realistically pay for the monthly mortgage fees without worrying that you will encounter trouble later on. Knowing these things will allow you to compare similar loan types from multiple sources.

mortgage loan

Understand your options

The mortgages available for consumers like you are numerous. Some are specifically made from first -time buyers, while others are suitable for people planning to switch their current mortgages. Knowing the options that you have will allow you to know what are the benefits and risks for each type, and if they will complement your needs.

Basically, there are two basic types of mortgages: repayment and the so called interest only. Repayment mortgage is where you will pay a fixed amount on a monthly basis for a set period until you are able to completely settle the loan as well as the interest. On the other hand, interest only mortgage involves month repayments for a set period, but the payments will only provide coverage to the interest of the loan. With this kind of mortgage you will have to pay off the rest of the loan once the term ends using another savings or investment plan.

Look at the features

When comparing mortgage products, it is important that you thoroughly investigate all their features and other associated costs. These include application fees, prepayment penalties, applicable overall annual percentage rate, initial interest rate, and insurance payments (if there are any) just to name a few. Determining these things will give you an idea which mortgage loan program is ideal for your situation.

The truth is, shopping for a mortgage, especially if you are a first-time buyer. However, if you want to make sure that you will get the best mortgage product that will suit your needs, it pays to do your homework and this includes doing comparisons. If you educate yourself about mortgages and the options available, you can make an informed choice that will surely give value to your money.

If you are looking for mortgage advisors west lothian services, Financial Wise is your go-to company. They provide the right quality of advice and excellent solutions for a wide variety of financial needs. The article above was written by one of the company’s regular contributors.

Believe it or not, it is possible to make money just by saving money thanks to the miracle of compound interest. As one of the most basic and safe investment tools, this savings technique can really add up over time. Putting aside a small amount of money every month makes a difference, especially with interest rates attached to the account. By agreeing not to touch the invested money, virtually anyone can increase their savings or investment balance. Over time, by allowing the interest to sit, one can make even more money – all without having to lift a finger. Let’s take a closer look at compound interest and how this small idea can give a huge boost to your savings and investments.

How Compound Interest Works

Each month, a person needs to set aside a certain amount of money to be put into some form of a savings account. The interest that the bank or institution pays on the account can then be re-invested, which means the free money then makes more money. All a person has to do is let the principal amount sit in the account along with the accrued or gained interest. Then, each month, one will earn even more in interest. It is important to know when interest is added up or compounded as the compounding schedule will be a critical factor in how much additional money your savings or investments earn.

Leave the Principle or Original Amount Alone

By letting money sit in an investment account, one is less likely to spend it. This is especially true once a person sees all of the interest adding up; with a bit of discipline, one can double their money (or better) within a short period of time with very little risk. This is why it is important to look for savings and money market accounts that come with high interest rates; these can really pay off later on down the line.

Save Regularly!

Every little bit counts when it comes time to save money. Adding just a small percentage of one’s weekly or monthly income to a savings account adds up over time. The more money is an account, the more interest a person will make. This is why many people set up automatic deposits into their accounts. Getting into the habit of putting money into a savings account makes it easier to save for a rainy day.

Different Savings Accounts and Interest Rates

It is important to look to see which savings account have which interest rates. Some will have a minimum balance that is necessary if people want to earn any interest at all, while others will have very loose terms that allow for withdrawals and deposits as often as necessary. Understanding what a financial group has to offer makes it easier to secure competitive interest rates.

Relying on Interest is a Safe Investment Option

The best part about compound interest is that there is essentially no risk. Unlike stocks, there is no risk of losing one’s money as most savings, money market, bond and other investments are insured. This makes saving and making money safe, reliable, and less stressful than other investment options. After all, interest rates will stay the same and one’s initial deposits are never at risk. All a person can do is make money, which is the whole point of saving. The downside is that lower risk options like basic interest generally don’t offer much in the way of growth, which means that it can take a bit longer to see real results.

Making money is easy if people get in the routine of saving even the smallest amount of cash every single month. This is a chance to really dig in and make the most of one’s funds. Compound interest makes it easier for people to stay motivated to reach their savings goals, which in turn makes it easier to save for college, to buy a home or car, and to plan for retirement. Learn the ins and outs of compound interest and you’re sure to make at least a bit of extra cash. Good luck!

Andrew Jameson is a real estate financier, author and blogger who enjoys helping newcomers learn how to maximize their financial position. To learn more about compound interest and how it affects your finances, Andrew recommends this compound interest calculator from the folks at InterestCalc.org. Thanks for reading!